The annualized 1.4 percent GDP growth in the October-December period was less than a robust rebound from the 2.6 percent decline of the economy in the previous quarter, when consumer spending and corporate investments were hit by a series of natural disasters such as torrential rains that left more than 200 people dead in western Japan and a big quake in Hokkaido. There is little cause for optimism over the course of Japan's economy as signs grow of a slowdown in overseas demand that had shored up the nation's extended boom cycle over the past several years. The latest GDP data gives all the more reason for further efforts toward domestic demand-driven growth of the economy.

Consumer spending in the last quarter of 2018 recovered from a 0.2 percent dip in the previous three-month period to a 0.6 percent growth, but the 2.4 percent rise in capital investments by companies was not strong enough to offset the 2.7 percent fall in the previous quarter. Exports grew 0.9 percent, but due to the 2.7 percent increase in imports, the overall contribution of external demand to GDP growth was a minus 0.3 points — staying in negative territory for the third quarter in a row.

Particularly worrying are the growing signs of risk to the global economy, ranging from the trade war between the United States and China, decelerating economic growth in China, and the confusion surrounding Britain's departure from the European Union, which cast doubt over robust demand in overseas markets continuing to fuel the growth of the Japanese economy.